America's Income Tax Map Is Changing—North Carolina Just Took Another Step
Summary
North Carolina’s Governor Josh Stein signed a $34 billion state budget that lowers income tax rates from 3.99% to 3.49% next year, with further cuts planned until at least 2033. The budget includes teacher raises, cuts some tax exemptions, eliminates tax reduction triggers, and sets aside money for hurricane recovery but also cuts over 1,000 state jobs.Key Facts
- North Carolina’s income tax rate will drop from 3.99% in 2024 to 3.49%, then to 2.99% by 2033.
- The budget is $34 billion and is the first since 2023.
- Teacher raises focus more on new educators than veterans, which caused debate.
- Tax exemptions for electricity used by data centers were removed.
- The automatic tax cut triggers were eliminated from the budget.
- Over 1,000 state government jobs will be cut as part of cost-saving.
- $700 million is allocated for Hurricane Helene recovery in western North Carolina.
- Governor Stein warned of a possible $3.5 billion shortfall and said continued cuts could harm public services like education and safety.
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